Indonesia's Ambitious Energy Plan: 70 GW Capacity Target

Massive Investment to Transform Energy Landscape

The Indonesian government has unveiled an ambitious plan to develop 70 gigawatts (GW) of new power generation capacity over the next decade, backed by an estimated investment of Rp 1,500 trillion. This strategic initiative is detailed in the latest Electricity Supply Business Plan (RUPTL) of PT PLN (Persero) for the period 2025-2034. The plan emphasizes a significant shift towards renewable energy sources (EBT), with 76% of the new capacity expected to come from clean energy technologies.

Strategic Focus on Renewable Energy

According to Bhimo Aryanto, Senior Director of Business Performance & Assets Optimization at Danantara, the RUPTL outlines a clear roadmap for Indonesia's energy future. "In terms of capex (capital expenditure), if we imagine it, there will be more than Rp 1,500 trillion possibly," Bhimo revealed during the Public & Business Leader Forum. The focus on renewable energy is evident as the plan mandates that 76% of the 70 GW new capacity will come from EBT sources, marking a significant step in Indonesia's transition to cleaner energy.

Implications for Indonesia's Energy Sector

This massive investment plan has far-reaching implications for Indonesia's energy landscape. The development of 70 GW of new power generation capacity will not only meet the growing electricity demand but also transform the country's energy mix. The strong emphasis on renewable energy is expected to reduce Indonesia's reliance on fossil fuels and contribute to its climate change mitigation efforts.

Challenges and Opportunities

While the plan presents significant opportunities for growth in the renewable energy sector, it also poses challenges in terms of implementation and financing. The Indonesian government and private sector will need to work together to mobilize the required investment and ensure the successful execution of these ambitious plans.